base, which is not interested in buying at the moment. Seidl said he recently returned from a marketing trip throughout Europe. Most of his investors there tend to hold onto stocks for 12 months or more, and they don’t find transportation stocks compelling. “No one wants to buy transportation stocks
over in Europe right now, and they just see the deceleration in the economy, and they’re a little bit worried,” he said. “I can’t say I blame them. I think there is a lack of a catalyst in the near term, but as we move throughout the back half of the year, there’s a lot of things going on for the group.” Te future looks better for asset-based
companies such as motor carriers than it does for non-asset-based companies such as freight brokers and forwarders, he said. Tat’s because non-asset-based companies tend to do better in a slow economy when investors are looking for something safe. Because transportation companies compose only 2.8 percent of the S&P 500, investors don’t put their money into a lot of them. When the economy is growing —which it is—investors look for better
returns, which asset-based companies can provide. As a result, he said, “I think you could see
some of that money flow from the non-asset- based side to the asset-based side before the end of the year.”
THE RAIL EFFECT In addition to trucking, Seidl covers the rail
sector, where carloads had been falling by double digits in the second quarter. Te slowdown is occurring for two reasons. First, automotive hauling, which was tracking upwards almost
Continues
We know the nuts and bolts.
Only one third* of transportation decision makers are very confident their business is properly insured.
With nearly 70 years of experience, Northland knows the transportation industry. Our coverages are designed to provide the best possible protection for you. Trust that you will have the coverages you need. That’s the Northland Advantage.
To learn about our coverages and cargo forms, call your agent or broker, or visit us online at
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* Travelers 2015 Business Risk Index © 2015 The Travelers Indemnity Company. All rights reserved. M-16993-2 Rev. 10-15
Northland is a proud member and supporter of the Nebraska Trucking Association.
NEBRASKA TRUCKER — ISSUE 4, 2016 —
www.nebtrucking.com
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